Overall, there aren’t any drastic changes. The textbook is riddled with wording changes and what appear to be new vocabulary terms, but closer examination reveals that most of the changes are superficial rewordings and the newly bolded terms were actually referred to in the second edition book (they just weren’t previously designated as vocabulary words).
Virtually all of the significant changes are related to the use of technology. If you studied the technology chapters or sections from CPCU 500 and CPCU 540, you’ll be very familiar with the new content in CPCU 520.
Below is a list of the most noteworthy section changes (chapter numbers & titles taken from the new second edition book):
Please note: We do not provide any guarantee or warranty that this is an all-inclusive list of the changes to the latest textbook.
Chapter 1 – Overview of Insurance Operations
- The Rise of InsurTech Companies (newly added)
- The Digitization of Insurance (newly added)
Chapter 2 – Insurance Regulation
- NAIC International Insurers Department (expanded slightly)
- National Association of Registered Agents & Brokers Reform Act of 2015 (newly added paragraph)
- Unofficial Regulators of Insurance (removed from 3rd edition)
Chapter 3 – Insurance Marketing & Distribution
- Internet Benefits & Challenges for Insurers table (removed from 3rd edition)
Chapter 4 – The Underwriting Function
- Purpose of Underwriting (removed from 3rd edition)
- Line Underwriting Activities (modified)
- Staff Underwriting Activities (modified)
Chapter 5 – Risk Control & Premium Auditing
- Technology’s Growing Impact on the Survey Process (newly added)
- The Importance of Premium Auditing for the Insurer (newly added)
- Collect Ratemaking Data (expanded)
- Blockchain’s Impact on Premium Auditing (newly added)
- Importance of Accurate Premium Audits (removed from 3rd edition)
Chapter 6 – The Claims Function
- How Blockchain Can Assist in Processing Claims (newly added)
- 6 methods of setting loss reserves (removed from 3rd edition)
- Setting Accurate Reserves Can Be Difficult (newly added)
- Investigating the Claim (modified)
- Documenting the Claim (newly added)
- Concluding the Claim (expanded)
Chapter 7 – Actuarial Operations
- An Illustration of Reserving Methods (removed from 3rd edition)
Chapter 8 – Reinsurance Principles & Concepts
- How Blockchain Could Change Reinsurance (newly added)
- Reinsurance Professional & Trade Associations (removed from 3rd edition)
- The Rise of Parametric Insurance (newly added)
- Reinsurance Program Design (removed)
Chapter 9 – Business Needs & IT Alignment
- Gain a Competitive Advantage (expanded)
- Transaction Processing Systems (entire section greatly modified)
- Electronic & Mobile Commerce (removed from 3rd edition)
- Mobile Devices (removed from 3rd edition)
Chapter 10 – Insurer Strategic Management
- Decline Mode Strategies (modified)
- Insurers’ Global Expansion (removed from 3rd edition)
Please note that all CPCU 520 exams moving forward will be based on this new third edition, so be mindful if you are attempting to study with an older edition.
We’ve updated our study guide!
We’ve updated our CPCU 520 study materials to reflect the changes. Anyone who previously purchased our CPCU 520 bundle will be given access to the new version, free of charge.
CPCU 520 Study Guide e-Bundle – Only $14.99
- For use with 3rd edition textbook
- FREE lifetime updates (whenever we update our materials, you get access to the new version at no additional charge)
- Delivered instantly as PDF (up to 5 download attempts within 1 year of purchase date)
- Includes:
- Study guide
- BONUS: Formulas module
- BONUS: Formulas cheat sheet
- BONUS: How to Memorize CPCU Formulas
- BONUS: Comparison of Insurance Customers cheat sheet
- BONUS: Actuarial Word Problems worksheet
- BONUS: Types of Reinsurance chart
- BONUS: Reinsurance Practice Problems worksheet
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